DeBary staff warns state bills could shrink local control and revenue

City of DeBary City Council · February 19, 2026

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Summary

City staff told the council that multiple Florida bills under consideration—on accessory dwelling units, transit-oriented development, the Starter Homes Act, and elimination or reduction of tangible personal property taxes—could limit local land-use authority and reduce municipal revenue, potentially requiring DeBary to raise rates or use non-ad valorem assessments.

City of DeBary officials briefed the council on pending Florida legislation they said could materially affect local land-use authority and municipal finances if enacted.

Government Affairs Director Sherry Simmons said the legislature had hundreds of competing appropriation requests and that DeBary saw some success: two of the city's three appropriation requests made the House budget and all three appeared in the Senate budget versions. Simmons identified a $2.5 million request for Alexander Island park development and a separate request for stormwater and pump improvements; she noted the House and Senate funding numbers differed in committee actions.

Simmons then reviewed several bills of concern. On accessory dwelling units (ADUs), she said a bill would require local governments to adopt ordinances allowing ADUs in single-family residential zones without discretionary review, owner-occupancy requirements or increased parking mandates—potentially allowing short-term rentals. She said the ADU proposal had passed the Senate at the time of the briefing but had not advanced in the House.

Simmons described the Starter Homes Act as a measure that could rezone single-family areas for multifamily development without local public input and said a Transit-Oriented Development bill would mandate increased residential density and height—"we would be compelled, again, without public comment, to permit increased heights and development density regardless of existing zoning designations." She also warned about bills that let private reviewers perform plan reviews and be treated as city agents for sovereign-immunity coverage, which she said could complicate municipal risk management.

On fiscal issues, Simmons warned that proposals targeting tangible personal property (TPP) taxes—equipment and other nonpermanent business property—could remove millions in local revenue. She cited utility TPP contributions by FP&L and Duke and said losing TPP revenue would require either higher ad valorem rates or non-ad valorem assessments; she noted DeBary's high homestead rate (82% of properties) increases the potential distributional impact.

City Manager and City Attorney added that if TPP taxation were eliminated or the homestead exemption phased down, the city might need to pursue options such as raising the ad valorem rate or adopting non-ad valorem assessments for specific services, subject to statutory requirements and public notice.

Council members asked about effects on seniors and HOAs and about the process and obligations tied to issuing a letter of intent to study non-ad valorem assessments; staff said the notice starts a process, does not itself impose a fee, and statutory public workshops and legal thresholds would apply.

Council and staff said they are actively engaging with legislators and preparing options should bills pass, but acknowledged significant uncertainty until final legislative action and any gubernatorial vetoes are resolved.